Data Optimization Project

Building on the successful conversion of its previous IDMS database management system to the more flexible and efficient DB2 system in 2007, the Board has continued to work on its multi-year data optimization project. The goal of this project was to create one optimized master database of all railroad employee and beneficiary information, streamlining and consolidating disparate data in many of the agency’s legacy databases into a single database. This, in turn, will make processing more accurate and efficient. Using contractor support, the Board worked to resolve redundancy of data in multiple locations, synchronize data between the legacy systems and the new optimized database, and enhance quality control related to viewing/editing database contents. The bulk of the project work was completed in 2008, including a comprehensive project plan, risk management plan, requirements definitions, data quality plan, project schedule, design/mapping of the new database and testing. The agency subsequently completed the project on time and within budget during February 2009, with all activities and the project schedule validated and verified by an independent contractor.

The Board’s mainframe computer system is the core of the agency’s enterprise infrastructure, as it contains a suite of mission-critical legacy applications and production databases necessary to process and pay benefits. In 2008, the Board successfully installed a new IBM mainframe computer that increased processing and storage capacities. In addition, the new mainframe is designed to enable future increases in processing capacity without incurring additional hardware costs or installation work. The complex conversion to the new mainframe was completed without any adverse impact on agency operations.

RRB Vision

The Board’s RRBVision system allows users to view video presentations with accompanying training materials, such as PowerPoint presentations or online screens. Presentations can be viewed in real time or saved for later viewing. In 2008, 33 new RRBVision presentations were developed and placed on the agency’s intranet for viewing by Board employees. Topics included technical training for claims examiners/representatives as well as non-technical training and presentations by the agency’s Office of Equal Opportunity. In addition, 20 presentations for external audiences were posted on the agency’s Web site. These presentations covered instructions in filing for sickness and unemployment benefits under the Railroad Unemployment Insurance Act, filing for retirement benefits under the Railroad Retirement Act, completing a variety of compensation-reporting forms and navigating the Board’s Web site. RRBVision provides increased consistency and variety in training available to offsite staff, makes the information available on demand, and reduces travel and related costs associated with face-to-face training.

Officials

Michael S. Schwartz continues to serve as Chairman of the Board, along with V.M. Speakman, Jr. as Labor Member and Jerome F. Kever as Management Member.

As part of a reorganization of the agency’s field service, the Board appointed Michael Bauer as Deputy Director of Field Service, Michael Petry as Associate Director of Field Service, and Daniel Fadden as Chief of Field Communications and Analysis. In addition, with the creation of a networked structure for the 53 field offices, the agency appointed 12 Network Managers.

Workforce Management

Human Capital and Succession Planning

Like many Federal agencies, the Board has a number of employees at or near retirement age. As a result, the agency is focusing on several activities, including development of a formal human capital plan for the Board that adheres to guidance issued by the Office of Personnel Management. This document identifies demographic features of the agency’s workforce and the skills needed to fulfill its mission. The plan also describes several key challenges facing the agency, including an aging workforce, employee attrition and the increasing complexity of information technology needs. The plan establishes a framework of actions over the next few years to recruit, retain and develop talented employees. The Board is also in the process of developing a succession planning document that specifies staffing needed to meet organizational goals, identifies competency gaps and develops strategies to address overall human capital needs and any such gaps.

Staffing

The Board has continued hiring new employees to fill essential positions as funding levels permit. In fiscal year 2008, the agency completed a training class of retirement initial claims examiners. These newly trained examiners are responsible for processing the initial retirement applications for railroad employees and their spouses, supplemental annuity payments, and the disability annuity payments after someone has been rated as disabled. The Board also completed a retirement post training program, with these examiners responsible for adjudicating and authorizing a broad range of post-entitlement claims associated with retirement annuity payments. The last formal retirement initial and post training programs were conducted in 1993. Additional training classes are planned for 2009.

Federal Human Capital Survey

The Federal Human Capital Survey is a tool that measures employees’ perceptions of whether conditions common to successful organizations are present within their agencies. The survey is conducted every 2 years by the Office of Personnel Management, and the results provide valuable insight into challenges faced by agency leaders in ensuring the Federal Government has an effective civilian workforce. The most recent survey took place in September 2008, and the Board had the eighth-highest response rate (66.4 percent) of the 43 agencies surveyed. The detailed results for the Board also showed that it had the distinction of having one of the highest score increases since the 2006 survey in questions related to job satisfaction, appearing in the top ten agencies in this category. The Job Satisfaction Index indicates the extent to which employees are satisfied with their jobs and various aspects of their positions. The Board had a 67.5 percent positive response rate in this category, indicating increased satisfaction with policies and practices of senior leaders, opportunities for upward mobility and on-the-job training.

Enhanced Employee Identification Cards

The Board made significant progress in implementing Homeland Security Presidential Directive 12 (HSPD-12) that called for Federal agencies to issue employee identification cards that provide enhanced reliability and security. HSPD-12 contains standards for making identification cards consistent among agencies. It also includes enhanced procedures for verifying an employee’s identity prior to card issuance and through use of biometric data embedded in the card. The Board is a shared service provider under this initiative, hosting a credentialing center that is shared with other Federal agencies. The center is housed within the agency’s Bureau of Human Resources and is staffed by a single contractor employee. Between March and December of 2008, the new identification cards were issued to 793 Board employees.

Office of Equal Opportunity

Diversity Program

During fiscal year 2008, the Office of Equal Opportunity’s employee committees sponsored many events and activities at the Board to foster a diverse work environment and enhance the understanding of disability issues.

Throughout the year, the Workplace Diversity Committee organized various cultural enrichment events to commemorate African American History Month, Women’s History Month, Asian Pacific American Heritage Month, Hispanic Heritage Month and Native American Heritage Month. In addition, a cross-cultural communication workshop was held for managers and supervisors. The Employees with Disabilities Advisory Council sponsored a program to observe Disability Employment Awareness Month, and also successfully worked with the City of Chicago’s Department of Transportation to obtain accessible parking for agency customers conducting business at the Board’s headquarters building as well as for disabled agency employees.

Equal Opportunity Policy and Procedure

The Office of Equal Opportunity coordinates the processing of complaints from Board employees and applicants for employment which involve issues of discrimination. With Board leadership committed to equal employment opportunity principles, the agency promotes proactive prevention. Managers are held accountable, complaints are processed efficiently and corrective actions are taken promptly. During fiscal year 2008, the office worked with the Board’s Bureau of Law to create the agency’s Anti-Harassment Policy and Complaint Procedure. This new policy addresses harassing conduct based on race, color, religion, sex (including sexual orientation), national origin, age and disability. The policy outlines actions employees should take if they believe they are being harassed, and requires Board officials to quickly review allegations and take appropriation action. The office also created a video training module covering the provisions of the Notification and Federal Employee Anti-Discrimination and Retaliation (No FEAR) Act of 2002. The training addressed anti-discrimination laws, harassment and whistleblower protection laws, and was made available to all employees via the agency’s intranet.

Recruitment

The Office of Equal Opportunity worked cooperatively with the Board’s Bureau of Human Resources to create a diverse pool of qualified candidates for employment by identifying sources to recruit individuals from various racial and ethnic groups, individuals with disabilities and disabled veterans. During the year, the office also released a skill-gap survey to employees at the GS-8 pay grade level or below to help identify skill gaps that could be hindering the upward mobility of lower-graded employees.

Public Information Activities

The Board maintains direct contact with railroad retirement beneficiaries through its field offices located across the country. Field personnel explain benefit rights and responsibilities on an individual basis, assist railroad employees in applying for benefits and answer any questions related to the benefit programs. The Board also relies on railroad labor groups and employers for assistance in keeping railroad personnel informed about its benefit programs.

At informational conferences sponsored by the Labor Member of the Board for railroad labor union officials, Board representatives describe and discuss the benefits available under the railroad retirement-survivor, unemployment-sickness and Medicare programs, and the attendees are provided with comprehensive informational materials. Now in its 52nd year, in 2008 a total of 1,489 railroad labor union officials attended 32 informational conferences held in cities throughout the United States. In addition, railroad labor unions frequently request that Board representatives speak before their meetings, seminars and conventions. In 2008, the Labor Member’s Office was represented at six union gatherings attended by 1,420 railroad labor officials. Field personnel addressed 143 local union meetings with 6,598 members in attendance. The Labor Member’s Office conducted a National Reporting Officers’ Meeting at the Board’s Chicago headquarters in October 2008. Nineteen representatives of labor employers attended the training. Guest speakers from the Internal Revenue Service and the Social Security Administration also participated.

At seminars for railroad executives and managers, Board representatives review programs, financing, and administration, with special emphasis on those areas which require cooperation between railroads and Board offices. During 2008, the Management Member’s Office conducted three seminars for railroad officials, as well as pre-retirement counseling seminars attended by railroad employees and their spouses, and benefit update presentations.

Office of Inspector General

During fiscal year 2008, the Office of Inspector General continued its mission to promote economy, efficiency and effectiveness in the administration of agency programs, and to detect and prevent fraud, waste and abuse in such programs. To further this mission, auditors completed five audits and issued their findings and recommendations to Board management. Special agents investigated 421 potential criminal matters, representing approximately $16 million in fraud against the agency.

The Board’s occupational disability program is a unique benefit for railroad employees and, according to the Office of Inspector General, has a low threshold for eligibility, with about 98 percent of applicants approved for benefits. During fiscal year 2008, the Office of Inspector General continued to devote investigative and audit resources to the oversight of this and other agency programs. For example, based on an Office of Inspector General recommendation, the agency made changes to forms and correspondence requiring annuitants to provide more information when they are engaged in self-employment work or have an affiliation with a corporation. Agency personnel reported that the revised forms are capturing the intended information and, more specifically, annuitants are reporting their corporate ownership/involvement activity.

In March 2008, the Inspector General issued a Statement of Concern entitled “National Railroad Retirement Investment Trust Lack of Provision for Performance Audits.” This statement expressed the Inspector General’s concerns regarding the absence of performance audits and oversight of the National Railroad Retirement Investment Trust. The Inspector General concluded that the lack of performance audits of Trust activities and operations leaves the railroad retirement program with fewer safeguards than those established to protect the retirement investment of Federal and private-sector workers. The Board has enforcement authority with respect to the Trust, according to the Inspector General, but is not authorized to obtain the kind of information that would identify situations requiring agency action. The Inspector General’s statement further concluded that an annual audit of the Trust’s financial statements is not adequate to protect the railroad retirement program from the risks that performance audits are meant to identify.

The Office of Inspector General completed the audit of the Board’s fiscal year 2007 financial statements and began its audit of the agency’s fiscal year 2008 statements. Auditors issued an unqualified, or clean, opinion on the agency’s fiscal year 2007 financial statements. They also reported material weaknesses in internal control over information security and the social insurance fund balance, and a significant deficiency in controls over financial reporting.

In connection with the financial statement audit, the Office of Inspector General issued a statement entitled “Management and Performance Challenges Facing the Railroad Retirement Board.” This statement was prepared pursuant to the Reports Consolidation Act of 2000 and the requirements of Office of Management and Budget Circular A-136. This circular requires inspectors general to identify the most serious management challenges facing their parent agencies and to briefly assess the agencies’ progress in addressing those challenges. The Inspector General identified information technology security, safeguarding privacy and performance management as the most serious challenges facing Board management. This statement was published in the agency’s fiscal year 2007 Performance and Accountability Report.

Pursuant to the requirements of the Federal Information Security Management Act of 2002 (FISMA), auditors conducted the annual evaluation of the agency’s information security program, and concluded that the Board had not yet achieved an effective FISMA-compliant security program. The agency is addressing previously reported significant deficiencies in access controls, risk assessments and periodic testing/evaluation, but the auditors concluded that much work remains to be done.

Office of Inspector General investigators focus on identifying, investigating and presenting fraud cases for prosecution. Staff conduct investigations throughout the United States relating to the fraudulent receipt of sickness, unemployment, disability, retirement or Medicare benefits. They also investigate railroad employers and unions when there is an indication that they have submitted false reports to the Board, as well as allegations regarding misconduct by or threats against agency employees. Investigative efforts can result in criminal convictions, civil penalties, program benefits recovery and/or administrative sanctions. During fiscal year 2008, investigative efforts resulted in 47 convictions, 52 indictments and informations, 29 civil judgments and $4.1 million in recoveries, restitutions, fines, civil damages and penalties.